Fed’s Harker says 3% inflation is the maximum he would like to see
Federal Reserve officials are willing to let inflation run above their 2% target to make up for periods of lower inflation, and they will be watching the pace of inflation changes in addition to the level, Philadelphia Fed President Patrick Harker said on Tuesday.
“It’s not only a number … but it’s also the rate of change,” Harker said during a virtual event organized by CFA Society Philadelphia. He said 3% is probably the “maximum” inflation he would like to see, though he would be more comfortable with inflation at around 2.5%. “We don’t want inflation to run out of control,” he said.
Source: Reuters (Reporting by Jonnelle Marte; Editing by Leslie Adler)